60% of whiplash claims classed as fraudulent

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A study has revealed up to 60% of all whiplash claims received by insurers transpire to be either exaggerated or fraudulent.

Around 1,500 claims for whiplash are received by insurers every day, with numbers rising dramatically as claimants attempt to seek compensation payouts, even in the event of no injuries being sustained.

The car insurance provider, =LV, found over a quarter of people who had claimed for personal injury compensation as a result of a motor incident said they had inflated their story in an effort to receive more money.

A further 10% admitted to making up an entire story in order to receive a payout.

John O'Roarke, managing director of LV= car insurance, said: "Fraud has been seen as a 'victim-less' crime for far too long but the reality is that it drives up premiums for honest motorists.

"We support the Ministry of Justice's consultation on whiplash and its aims to create new legislation that will reduce the burden of these costs for honest motorists.

"Those tempted to make a claim when they do not have an injury should think again as making a fraudulent claim could lead to a hefty fine or prison sentence," he warned.